How Apple product pricing compares to its closest competitors, in one chart

One of the loudest rumors about the redesigned iPhone expected to launch this fall is that it could cost $1,000 or more.

But that price point doesn’t seem realistic, writes UBS analyst Steven Milunovich in a note distributed to clients on Tuesday.

Instead, he expects the redesigned iPhone, with a next-generation OLED screen, to start at $850 or $900.

He also expects Apple to launch two other models more similar to the iPhone 7 and iPhone 7 Plus at $650 and $750, close to their current price.

“Apple’s prices are consistent with a strategy we’ll call ‘mainstream luxury,'” he writes. “Entry-level products are positioned in the middle of the market and ‘Pro/Plus’ products sit at the high end. It’s a strategy that enables the Apple brand to be within the reach of a mass market yet be viewed as the premium option.”

Milunovich illustrates this point by comparing Apple laptop, phone, and tablet prices to other big electronics brands:

source

UBS

“Apple rarely ventures far above competitors at the high end. It is for this reason we do not expect to see a $1,000 iPhone,” Milunovich writes.